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GAO rules on subcontracting requirement.

A small prime contractor must perform at least 50% of the work on a set-aside contract, without counting the work of small subcontractors, the Government Accountability Office has ruled.

In a proposal to provide advisory and assistance services for the Air Force Flight Test Center at Edwards Air Force Base, CA, Centech Corp. said it would perform about 43% of the work and two small subcontractors would perform an additional 23%.

The Air Force awarded the small business set-aside contract to Centech, with the concurrence of the Small Business Administration. A losing offeror, Tybrin Corp., protested because the Federal Acquisition Regulation requires a small prime contractor's personnel to perform at least 50% of the work on a set-aside.

GAO sustained the protest. It said Centech's proposal should not have been considered because it did not meet the 50% requirement.

GAO recommended that the Air Force request revised proposals and make a new source selection decision.

The decision is Matter of TYBRIN Corporation, File B-298364.6; B-298364.7.
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Title Annotation:Government Accountability Office
Publication:Set-Aside Alert
Article Type:Brief article
Date:Apr 6, 2007
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